The Clarkson Principles originate from four conferences that were hosted
by the Centre for Corporate Social Performance and Ethics in the Faculty of
Management [now: the Clarkson Centre for Business Ethics & Board Effectiveness
or CC(BE)] between 1993 and 1998.

In these conferences, management students gathered to share ideas on stakeholder
theory, a then emerging field of study examining the relationships and responsibilities
of a corporation to employees, customers, suppliers, society, and the environment.

The Clarkson Principles of Stakeholder Management represent an early
stage general awareness of corporate governance concerns that have
been widely discussed in connection with the business scandals of 2001-2003.

Principle 1

Managers should acknowledge and actively monitor the concerns
of all legitimate stakeholders, and should take their interests
appropriately into account in decision-making and operations.

Principle 2

Managers should listen to and openly communicate with stakeholders
about their respective concerns and contributions, and about the
risks that they assume because of their involvement with the corporation.

Principle 3

Managers should adopt processes and modes of behavior that
are sensitive to the concerns and capabilities of each stakeholder
constituency.

Principle 4

Managers should recognize the interdependence of efforts and
rewards among stakeholders, and should attempt to achieve a fair
distribution of the benefits and burdens of corporate activity
among them, taking into account their respective risks and vulnerabilities.

Principle 5

Managers should work cooperatively with other entities, both
public and private, to insure that risks and harms arising from
corporate activities are minimized and, where they cannot be avoided,
appropriately compensated.

Principle 6

Managers should avoid altogether activities that might jeopardize
inalienable human rights (e.g., the right to life) or give rise
to risks which, if clearly understood, would be patently unacceptable
to relevant stakeholders.

Principle 7

Managers should acknowledge the potential conflicts between
(a) their own role as corporate stakeholders, and (b) their legal
and moral responsibilities for the interests of stakeholders,
and should address such conflicts through open communication,
appropriate reporting and incentive systems and, where necessary,
third party review.

The Clarkson Principles should be regarded as "meta-principles",
encouraging and requiring management to develop more specific stakeholder
principles and then to implement those in accordance with the Principles.